What is the role of the Federal Arbitration Act (FAA) in Buff City Soap arbitration proceedings?

According to the 2025 Buff City Soap Franchise Disclosure Document, the Federal Arbitration Act (FAA) governs the arbitration process. Specifically, the FAA, under 9 U.S.C. § 1 et seq., dictates how arbitration will be conducted between Buff City Soap and its franchisees. This means that any disputes that go to arbitration will be subject to the rules and regulations established by the FAA.

This has significant implications for prospective franchisees. The FAA generally favors arbitration, making the arbitration agreement more enforceable. It also limits the scope of judicial review of arbitration awards. This means that it can be more difficult to appeal an arbitrator's decision in court. The location of arbitration will be Dallas, Texas unless otherwise agreed in writing.

Furthermore, the selected arbitrator must have substantial experience. Unless otherwise agreed, the arbitrator must be a current or former practicing attorney or judge with at least ten years of experience in litigation, arbitration, or mediation of commercial disputes, and have prior experience as an arbitrator of at least three manufacturer/dealer or franchisor/franchisee disputes. Both Buff City Soap and the franchisee will cover their own attorney's fees and costs as determined by the CPR Rules.

It is also important to note that the arbitration proceedings are subject to confidentiality provisions outlined in Section 19(b) of the Franchise Agreement. This means that the details of the arbitration, including the claims made and the outcome, will be kept private. The CPR Rules also allow for interim measures to preserve the status quo or prevent irreparable injury during arbitration, and seeking such measures does not waive the obligation to arbitrate the underlying claim.